- When oil prices rise, inflation likely means higher interest rates. While there is not always a direct correlation between rising oil prices and changing interest rates, it is a real possibility.
- Oil traders are analyzing new inflation fears and the news that central banks might scale back their stimulus packages amid strong economic data and US unemployment figures.
- By rotating into commodity-sensitive and cyclical stocks, investors’ returns could see substantial outperformance, and oil will lead commodities as usual.
For further details see:
How Can Oil Traders Handle Inflation Fears?